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Want to start investing

Discussion in 'Off Topic [BG]' started by oniman7, Mar 29, 2013.

  1. I'm 17 and I read all the time "If only I had started investing sooner". I may only be able to put away $25 a month but I want to start building a savings now and continue it over time.

    I'm thinking now that I'll take half of my total income for immediate expenditures, 25% for savings, and 25% into a Roth IRA or similar.

    What are good links/resources for people in my position? I hardly know how to work a bank account or write a check (not taught in schools anymore unfortunately) but I know this is something I want to start now instead of waiting longer. I'm fairly confident that a small contribution now will help me enjoy many things later.

    I may be looking at the Treasury Bonds that give interest plus match inflation (DRIPS?) but until I have a good bit I want to wait a little bit to consider other forms of investing such as stocks, silver, currency, etc.
  2. Indiana Mike

    Indiana Mike

    Nov 18, 2005
    I can't give you any solid advice other than start now and when your approaching 50 you'll be glad you did.

    Something to consider is this . As my grandfather was approaching death at 96 he told me and my brother " spend your money ,have fun and die young ,you don't want to be 96"

    His point was all he did was save and live very frugal . In the end he had a lot of money but never did a whole lot . When he went in the nursing home he had about a million in cash and assets left. He had failed to transfer any of it prior to getting "old" and the nursing home got it all.

    good luck
  3. jasper383


    Dec 5, 2004
    Durham NC
    Good for you. Starting early makes a huge difference as to where an investor will end up.

    I suggest putting away the idea that you can consistently beat the market, especially for any long period of time. The great majority of investment pros trail the markets over time, there is no reason to think you won't.

    Never pay anyone commissions.

    Put a certain amount of money each month into a reasonable mix of stock and bond index mutual funds. Set it and forget it. I suggest using the mutual fund company Vanguard.

  4. jasper383


    Dec 5, 2004
    Durham NC
    I-Bonds is what I think you are talking about here. You can buy them direct from the Treasury.


    For someone just starting, these would be a great way to start. You can buy as little as $25 at a time. Get that ball rolling in the right direction.
  5. BassDoc51


    Dec 20, 2011
    Fairborn, OH
    I just heard on the radio that seeds are going to be worth as much as gold when this Monsato thing kicks in. Do I believe it; I don't know?
  6. MJ5150

    MJ5150 Moderator Staff Member Supporting Member

    Apr 12, 2001
    Olympia, WA
  7. Dale D Dilly

    Dale D Dilly Monster

    Jul 1, 2008
    Find people that are making something you believe in and invest in them. It's a moral exercise as much as a financial one, or if more people thought of it as such we'd all be in a better situation anyway.

    /terrible advice
  8. jasper383


    Dec 5, 2004
    Durham NC
  9. Unprofessional


    Mar 5, 2012
    +1 on Vanguard. I've used them since the early 90's. They're known for having low costs.
    Like it's already been said, set it and forget it. Don't drive yourself nuts by watching your share prices every day.
  10. jasper383


    Dec 5, 2004
    Durham NC
    Yeah, but that isn't sexy or flashy. :)

    I've seen a lot of investing advice forum threads to predict what will happen with this one (if it lasts). Someone will come along who has been making a killing in the market. They have it all figured out. It's sexy, flashy, and they are just killing it.

    Problem is, the OP has 50+ years to invest, and if he has any way of killing it over long periods of time, he's the next Warren Buffett. Actually, he's a lot better, as Buffett's investments have long periods where they trail the S&P 500, too.

    Slow but steady dollar cost average investing over a long time into broad market index funds is likely the best way for an investor to reach their goals. Warren Buffett himself suggests it.
  11. bluesblaster


    Jan 2, 2008
    Roth IRA mutual funds and dividend stocks through a low cost broker like scottrade or similar, start young and prosper and find good tax shelters. When you get old spend it and have fun, you earned it.
  12. Don't you guys have investment banks in the US?

    I have some money in an investment bank, mostly my capital keeps going up monthly (although it did go down a lot during the whole 08 fiasco, but it has since gone back up to more than it was before 08).

    I don't have to take care of anything, they do all the work. I have a meeting with the women who takes care of everything once or twice a year to see how things are going, and see if the general investment strategy needs changing and that's it.
  13. Richland123


    Apr 17, 2009
    You are wise at a young age to start now with at least a little something every month. It will add up over time. I am now in that "wish I did it sooner" category mainly because I always had something else the money had to pay for but once you start and don't touch your investment, you will be glad you did it.
  14. jasper383


    Dec 5, 2004
    Durham NC
    Sure, we have investment advisers and brokers all over the place here in the US. Merrill Lynch, Edward Jones, etc., plus all of the banks have someone who will advise.

    Problem is, nearly all of them charge 1-5% off the top, trail the indexes badly, and churn investors' accounts in order to maximize their bottom line.
  15. Don't let your father talk you out of buying Apple stock when it was $55 and they had just applied for a bunch of phone patents :/

  16. suckybassplaya


    Jun 24, 2010
    +1. And I concur with the suggestions of Vanguard for mutual funds. They are the gold standard for low cost index funds and ETFs. I would start with them with a Roth IRA using one (or more) of their funds. I also use Vanguard for my dividend bearing stocks, but they aren't the cheapest brokerage for stocks unless you already have a lot invested with their index funds.

    If you want some "light" reading, I suggest this book. It actually covers the ideas of an index fund vs a managed mutual fund, which were implemented by the guy who founded Vanguard.

    I also suggest this book, which is about investing in general. It covers some history and has some great information on how to invest generally.
  17. jasper383


    Dec 5, 2004
    Durham NC
    Fantastic reading recommendations.
  18. I will check those out. Thank you!
  19. Datsgor

    Datsgor Supporting Member

    Jul 29, 2000
    Great that you are doing this at a young age....soon enough you will realize the miracles of compound interest.
  20. RBX4


    Dec 21, 2010
    Miami, Florida

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